Gold Continues Climb for Fourth Consecutive Day as Expectations of Fed Rate Cuts and Dollar Decline Persist

Gold prices extended their gains for the fourth consecutive day on Tuesday, supported by a weaker U.S. dollar and declining Treasury yields. The rally was fueled by softer-than-expected U.S. labor data, which increased market expectations for a potential interest rate cut by the Federal Reserve in September.

Spot gold rose by 0.1% to $3,375.89 per ounce as of 02:39 GMT, while U.S. gold futures also edged up by 0.1% to $3,430.40 per ounce.

The U.S. dollar index hovered near a one-week low, enhancing the appeal of gold for holders of other currencies. Meanwhile, the yield on the 10-year U.S. Treasury note dropped to its lowest level in a month, providing additional support for the precious metal.

Economic Backdrop Favorable for Gold

The latest employment data in the United States pointed to a significant slowdown. Job growth in July fell short of expectations, and figures for May and June were revised downward by a combined 258,000 jobs, indicating a weakening labor market.

According to the CME FedWatch Tool, markets are now pricing in a 92% probability of a rate cut in September — a substantial shift that has further bolstered gold’s bullish momentum.

Commenting on the outlook, Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that mounting evidence of labor market deterioration and the absence of inflationary pressure from tariffs suggest the right time for rate cuts is approaching.

Geopolitical Tensions Add to Uncertainty

On the geopolitical front, former U.S. President Donald Trump reignited trade tensions by threatening new tariffs on Indian goods in response to India’s continued purchase of Russian oil. India dismissed the remarks as “unjustified” and pledged to defend its economic interests, heightening friction between the two nations.

Performance of Other Precious Metals

Silver increased by 0.1% to $37.44 per ouncePlatinum rose by 0.1% to $1,330.31 per ouncePalladium gained 0.2% to $1,204.25 per ounce

Gold continues to benefit from a confluence of supportive factors — including growing expectations of U.S. monetary easing, weakening labor market indicators, and global trade uncertainties. With the next Federal Reserve meeting approaching in September, investor focus remains firmly on macroeconomic data and central bank signals, both of which are likely to influence the trajectory of gold and other safe-haven assets in the near term.